Clearance of jobwork material along with fresh material

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This query is : Resolved

BASUDEV PAUL (Querist)

28 December 2009 We are in the processes of manufacturing liquid pharma intermediate chemicals, we use to sell our products in containres due to some mechanical problems in container valves our customer used material partly amd balance material return back us under jobwork challan for valve rectification.
our container filling limit is fixed with standard capacity.

Now we have received PO from same customer for fresh material.
Can we refil this container after valve rectification and clear the qty received under job work + fresh qty with duty payable excise invoice. but the container will the same.
Thanks
Basudev paul

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

01 January 2010 Rule 16 of the CER provides that you may avail the credit on the returned goods and after rectification resend on reversal of duty credit availed as long as the process you carry out is not manufacture.
If it were considered manufacture then you can avail; the credit on receipt and pay the ED on revised value if any.
The credit on the inputs used however may have to be reversed where process is not manufacture..

BASUDEV PAUL

BASUDEV PAUL (Querist)

09 January 2010 Thanks Mr. Madhukar for reply my question,
My question is as below.
We have received back 1 container with some material inside in the container, this is due to some mechanical problem with valve only and not with the material.
brief as below
we had despatched 400 litres of liquid material to our customer, they have used 350 litres out of the 400 litres then reported a problem at valve through which material was passing and the valve is fitted at the top with our container.
Now our customer returned this container under job work challan for the rectification of said valve.
On the other side they have placed order for same material to us.
Now my question is can we fill this container with same material 350 litre for which empty space available with this container.
And we can despatch this container to the same customer by raising Excise duty payable invoice for 350 litres + we can fill the customer's job work challan for valve rectification along with 50litres material.

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